Written by The Banking Post
Bangladesh has formally submitted its position paper to the Office of the United States Trade Representative (USTR), requesting July 26 as the launch date for the final round of bilateral tariff negotiations. With an August 1 deadline looming for new U.S. reciprocal tariffs, Dhaka is aiming to conclude the dialogue promptly to safeguard key export sectors.
Commerce Secretary Mahbubur Rahman confirmed that the Bangladeshi delegation stands ready to fly to Washington as soon as the USTR schedules the third and final round of talks. The paper outlines tariff reductions on selected American goods and commitments to increase U.S. imports—most notably a new agreement to procure 0.7 million tonnes of wheat annually, alongside advanced negotiations for purchasing 14 Boeing aircraft.
Sectoral stakes are high. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) warns that over 1,300 factories—many heavily reliant on U.S. exports—could see competitiveness eroded under the Trump administration’s proposed 35% tariff regime. BGMEA data reveals that:
- 100 factories send over 90% of their output to the U.S.
- 46 export 81–90%
- 91 export 61–80%
- 87 export 41–60%
- 176 export 21–40%
- 822 export up to 20%
Bangladesh is advocating for zero-duty access or rates below those offered to Vietnam, citing its $8.2 billion in garment exports to the U.S. last year. BGMEA President Mahmud Hasan Khan noted that the extension of the current tariff pause depends entirely on the Trump administration’s decision, and that pressure is mounting as August approaches.
Meanwhile, U.S. brands and retailers have signaled that suppliers in Bangladesh may be expected to absorb the added costs to maintain price stability, further raising concerns among local exporters.
